JEDDAH, April 20. /offset. Julia Hasegawa TASS/. Russia and Saudi Arabia is ready to ease restrictions on oil production despite the reduction of excess inventory, but haven’t decided when to do it. Russia is ready to raise the discussion of this issue in June, and the Saudis offer to find a deal for a new target that would justify a longer life to the Vienna agreement.
Time to finish?
On Friday in the Saudi city of Jeddah hosted the eighth meeting of the Ministerial monitoring Committee of OPEC+, during which two co – chairs, Russian energy Minister Alexander Novak and his Saudi counterpart Khaled al-Faleh is made slightly contradictory statements.
In fact, OPEC has estimated that the surplus of oil reserves since the beginning of the implementation of the transaction, January 2017, fell by almost 300 million barrels to the current time exceeds the average for five years, the level of total reserves of 12 million barrels. This year the goal is to destroy the layers will definitely be achieved, said al-Faleh.
Inventory status is an important indicator to measure the effectiveness of the agreement, but it needs to be not the only one, said the Saudi Minister. By the June meeting (the Alliance will gather in full force in Vienna on 22 June), the OPEC Secretariat is mandated to provide several new options for transaction criteria. If all members approve the introduction of a new target level, the duration of the transaction will be determined by its achievement.
The Output Of The Trump
None of the OPEC meeting+ passes without a discussion of the growth of shale production in the United States, which occurs on the background of reduction of oil production by OPEC countries.
And usually all of the statements on this subject came down to the fact that OPEC “welcomes every barrel of crude oil”. But this time Ministers had to comment on the statement U.S. President trump, who suddenly, in his Twitter blamed OPEC to manipulate oil prices.
A strong statement has caused bewilderment in participants of meeting in Jeddah. Novak and OPEC Secretary General Mohammed Barkindo reminded that American companies, by contrast, has benefited from the transaction and had the opportunity to realize their growth. And to manipulate the price of OPEC never tried, justified Barkindo. Moreover, he added, OPEC invited American companies to participate in the June seminar in Vienna and even received confirmation about the visit. Thus, the dialogue with shale producers will continue, he concluded.
We are one
The agreement in the positions of the Russian and Saudi Minister is still there. They both confirmed their readiness to develop a platform for long-term cooperation between the two countries in the oil market after 2018. However, the basis of this cooperation is not clear. Novak suggested that this could be a joint market monitoring with meetings twice a year.
Meanwhile, he told reporters that Russia will be able to restore production to the level preceding the transaction for several months. And in may-June, the energy Ministry will discuss with Russian companies, what position Russia will take in the June conference of the countries – exporters of oil.